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contract law
vitiation: duress and undue influence
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Cards (115)
What was the case Barton v Armstrong about?
Coercion
in a share purchase agreement
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What did Barton allege against Armstrong?
He was coerced by threats of
murder
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What was the court's ruling in Barton v Armstrong regarding duress?
Duress played a part in
Barton's
decision
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What must duress amount to in an actionable claim?
Illegal conduct
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What did Lord Wilberforce state about pressure in duress cases?
Pressure must be
illegitimate
to negate consent
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What is sufficient causation in duress according to Barton?
Duress must be 'a' reason for
entering contract
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What was the nominal value of the Notes issued by Ukraine?
USD 3bn
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What did Ukraine argue regarding the Notes and duress?
They faced unlawful threats from
Russia
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What did the Supreme Court rule about Ukraine's defense based on duress?
Allowed defense based on duress of
person
or goods
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What is the historical recognition of duress at common law?
Only duress directed at a person was
recognized
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What was held in Skeate v Beale regarding contracts?
Contract valid despite
unlawful
detention of goods
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What does 'volenti non fit injuria' mean?
To a
willing
person, it is
not
a
wrong
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What did Kerr J state about economic duress?
Mere commercial pressure is insufficient for duress
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What was the outcome of the case involving the Universal Sentinel?
Payment was recoverable due to
economic duress
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What was the relationship between PIAC and Times Travel?
Times Travel acted as
ticketing
agent
for PIAC
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What did the Supreme Court rule in PIAC v Times Travel regarding economic duress?
Contract
could not be
avoided
due
to
duress
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What two ways satisfy the requirement of illegitimate threat in economic duress?
Threat of
unlawful
act or illegitimate lawful act
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What factors did Lord Scarman establish for acceptable commercial pressure?
Protest, alternatives,
independent
advice, avoidance
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What is a threat of an unlawful act in economic duress?
Threat to
breach a contract
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What was the outcome in CTN and Carry Ltd v Gallagher Ltd regarding duress?
No
duress
found
due
to
lawful threat
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What were the key elements in the CTN case that led to no duress being found?
Arm's length dealings, lawful threat, bona fide belief
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What was the case Progress Bulk Carriers Ltd v Tube City IMS LLC about?
Chartering
a vessel and
contractual
obligations
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What did Progress Bulk Carriers seek in their case?
To recover
rights
regarding a
substitute vessel
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What was the court's ruling in Progress
Bulk
Carriers
regarding the
contract
?

Details of the ruling were not provided
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What happened to the cigarettes before they could be moved?
They were
stolen
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Why did D invoice C for the price of the cigarettes?
D believed the cigarettes were at C's
risk
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What could D lawfully do under the terms of the agreement?
Withdraw
credit
facilities
at any time
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What choice did C face regarding the payment for the cigarettes?
C opted to pay the
price
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On what basis did C reclaim the money paid?
Payment was made under
duress
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What was the key element in the held decision regarding duress?
No
duress
was
found
on
the
facts
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What were the three key elements that led to the decision of no duress?
Commercial dealings
, lawful threat,
bona fide belief
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What was the case name involving Progress and Tube City?
Progress Bulk Carriers Ltd
v
Tube City IMS LLC
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What did Progress do without informing Tube?
Fixed
the vessel to another charterer
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What did Tube seek to reserve after accepting a substitute vessel?
Rights
in respect of all claims for
damage
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What type of offer did Progress make to Tube?
A "
take it or leave it
" offer
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What does 'lawful act' duress recognize?
Legitimate basis for finding
economic
duress
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What constitutes 'illegitimate pressure' according to the authorities?
Conduct not in itself
unlawful
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What must C show regarding improper pressure in economic duress?
It must be
decisive
or clinching
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What is the applicable test for economic duress?
The
'but for'
test
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What is an additional requirement for economic duress?
C had no
reasonable alternative
but to agree
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